Arnold Kling has rediscovered another Hayek insight:
“Most unoccupied houses have close to zero marginal value to the vast majority of consumers, just as most unemployed workers have zero marginal product to the vast majority of firms.”
The distinction between economic and non economic goods seems lost on any economist who has not read Menger, . . . → Read More: Bingo
A new working paper from Steven Ealy.
Eamonn Butler’s excellent short study of Hayek’s economics and social philosophy is now available on the internet as a pdf document. The book is Hayek: His Contribution to the Political and Economic Thought of Our Time.
F. A. Hayek page. Of particular interest — “Key Concepts in Hayek’s Thought”.
Housing production* is exactly the kind of thing Hayek identified as a time delayed production good which can absorb credit, capital, and leverage in a bandwagon of false expectations, only revealed as structural malinvestments at the end of the artificial boom when credit, inputs, and leverage unavoidably become scarce — and false promises are revealed . . . → Read More: Vernon Smith on housing & the trade cycle
A basic understanding of the price mechanism exposes the pseudo-science of Keynesian economics:
It was John Maynard Keynes .. who ultimately succeeded in rehabilitating a view long the preserve of cranks .. He had attempted by a succession of new theories to justify the same, superficially persuasive, intuitive belief that had been held by many . . . → Read More: Keynesian fail – manipulating “aggregate demand” does not equalibrate the supply and demand for inputs
Angelo Codevilla on America’s Ruling Class.
I take up the question here.
The Entrepreneurial Mind vs Ben Bernanke.
How the leftist elite uses dependence to caponize rivals to their power.
Martin Chren has been appointed state secretary of the Economy Ministry in Slovakia.